ASBFY Associated British Foods Plc (PK)

   By Rory Gallivan 
 

LONDON--Associated British Foods PLC (ABF.LN) Thursday said it no longer expects a decline in adjusted earnings per share for the full year after benefiting from the falling pound after the EU referendum.

The food and ingredients supplier, which also operates the fashion chain Primark, said revenue for the 40 weeks ended June 18 was 3% ahead of last year stripping out the effect of currency movements, and by 1%, including exchange rate movements. Third quarter growth was 4% at constant currency and 7% at actual exchange rates.

The underlying operating performance of the group during the third quarter was ahead of its expectation, boosted by an improvement in the sugar business, AB Foods said.

"Following the result of the E.U. referendum, sterling has weakened further and at these rates we expect a bigger translation benefit in the final quarter with no material transactional effect," the company said.

Primark sales in the 40 weeks ended June 18 were 7% ahead of last year at constant and actual exchange rates.

AB Foods in April said it expected a "marginal decline" in adjusted earnings per share for the full year, but now no longer predicts any decline.

AB Foods supplies food ingredients including sugar and enzymes and also owns food brands such as Ryvita crisp bread and Twinings tea. Primark has almost 300 stores in the U.K., Ireland, mainland Europe and the U.S.

Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

July 07, 2016 02:40 ET (06:40 GMT)

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